I have been watching WWAT as well, did some research and don't like what I see with this kind of financing. WWAT seems to be growing; yet, any run up will be met with selling by CAMOFI LDC. Especially when they have a bunch of warrants that can be exercised at .18 cents.
FYI,
WWAT:
In the nine months ended September 30, 2005, the Company has raised $6,311,677 through: a) the issuance of debt $3,780,000 and b) proceeds of $2,531,677 from the sale of stock, including the exercise of warrants and stock options. As of September 30, 2005, $1,000,000 of the funds raised is restricted in use until certain milestones are met, (referred to the Restricted Cash and Restricted Cash Equivalent note). The Company expects to achieve these milestones within the next 90 days. Through the nine months ended September 30, 2005, the Company has reduced debt by $2,660,402 through a) payments of $855,402 and b) the conversion of $1,805,000 of notes into common stock of the Company.
On November 4, 2005, the Company delivered a Conversion Notice to the agent of the Foreign Credit Unions debt of its intent to exercise its option to convert the remaining $300,000 of the 18% debt maturing July, 2006 into 1,000,000 shares of common stock of the Company. On November 14, 2005 the Company received a Conversion Notice from a Fund converting $92,178 ($125,000 face amount) of a 10% convertible notes maturing August, 2008 into 694,444 shares of common stock of the Company.
The Company completed a re-capitalization in the month of July 2005 to address on-going liquidity requirements. Below is a description of the various parts of the completed re-capitalization.
Camofi Master LDC Securities Purchase Agreement
In July, 2005, the Company entered into a Securities Purchase Agreement with Camofi Master LDC (Camofi). Under the terms of the agreement, Camofi acquired:
•4,259,260 common shares of the Company at $0.24 per share resulting in net proceeds of $1,022,222.
•A $3,250,000 principal amount 10% Convertible Note Due July 21, 2008 for a purchase price of $3,000,000, which is convertible into 18,055,556 shares of the Company's common stock;
•Warrants to purchase an aggregate of 9,027,778 shares of common stock of the Company at an exercise price of $.18 per share; and
•Warrants to purchase an aggregate of 1,277,778 shares of common stock of the Company at an exercise price of $.22 per share. |
